Since this is a two-level system, it doesn't make much sense to me to work in position space. You have given all information on the system, provided the energy eigenvalues are not degenerate. Thus the Hilbert space is two-dimensional and spanned by two energy eigenkets |u_1 \rangle and |u_2 \rangle. These are orthonormal vectors, because they are the eigenvectors of the self-adjoint Hamilton operator of the system. The eigenvalues are also given to be E_0 and 2 E_0.
A general pure state is represented by a unit vector, i.e., by
|\psi \rangle = \psi_1 |u_1 \rangle + \psi_2 |u_2 \rangle.
The components \psi_1 and \psi_2 must fulfill the normalization condition
|\psi_1|^2 + |\psi_2|^2=1.
The other condition given is that the energy expectation value is 3/2 E_0, i.e.,
\langle \psi |H| \psi \rangle = E_0 |C_1|^2+2 E_0 |C_2|^2=\frac{3}{2} E_0,
which you should prove yourself from the formalism!
Now you have a linear system of equations for |C_1|^2 and |C_2|^2. Find the solution first. Then you'll see that your texbook is not wrong, because it gives you indeed a state with the desired expectation value of the energy.
Think, however, a bit further! Is the state really determined completely by just giving the one expectation value of the energy? Note that C_1 and C_2 both can be complex and that any unit vector that differs from |\psi \rangle simply multiplied by a phase factor describes the same pure state, i.e., any ket
|\psi' \rangle=\exp(\mathrm{i} \varphi) |\psi \rangle
is equivalent with |\psi \rangle.
Further you can think about the time evolution of the state in the Schrödinger picture, as also seems to be discussed somewhat in this thread.
For sure, integration of a wave function over time in the proposed in the original posting doesn't make much sense at all. Where does this idea come from? Maybe you mix this up from classical electrodynamics, where you consider time averaged values of observables like field energy? That's not how quantum theory works! Here the expectation values are of different nature, and you must not consider the wave function in quantum theory as a kind of field describing a particle as a "smeared something". This was the original idea of Schrödinger's when he invented his "wave mechanics". It has been rapidly abandoned by Born to contradict the experimental findings about particles like electrons and substituted by the probabilistic interpretation of the wave function, which still is valid today. It is very important to get used to that ideas, which however takes some time and is the real challenge of learning quantum mechanics!
For that purpose it's also very goot to get used to the bra-ket (or more generally the abstract Hilberst-space) formalism of quantum mechanics as soon as you can. Wave functions are nice but not the most versatile way to express quantum theory. They are simply the kets in position representation. As in this example, there is not always a position representation available or it's not necessary to be used.